The commission-per-action model, much known as the CPA commission model, is one of the most popular and effective commission models in affiliate marketing. Moreover, it is impossible to define the click rate (CTR) of an ad without taking into account the number of impressions of it.
Even today, the value of CPM is used in advertising platforms like Facebook and Google AdWords and is an extremely important metric for performance and cost analysis. This model started to be used in practically all major portals and media, which sold their advertising spaces in the CPM model to their advertisers, because they considered that the user who browsed their sites was already being impacted by these ads, simply by viewing them, even if he did not click. Logically, in the 80’s and ‘90s, the number of clicks on advertising banners was very high, with click-through rates reaching 96%, which invariably made most users click on ads. In this commission model, the affiliate received a fixed amount for every thousand impressions of an advertising banner, regardless of whether the user clicked on the banner or not.
The commission per thousand impressions model was widely spread when the internet reached the general public. the user buying the product, but has the disadvantage of being a difficult model to scale since earning a lot of money would require hundreds of thousands of clicks. This model has the advantage that the affiliate is not dependent on the final result, i.e. With CPC, the affiliate receives a fixed or variable amount each time the advertising banner or text link receives a click from a user. Together with Google AdWords, Google launched the Google Adsense program, which is nothing more or nothing less than an affiliate program that pays per click on text or image ads. When Google decided to launch Google AdWords on October 23, 2000, this commission model became widely used in the world. The CPC (cost per click) commission model is one of the oldest on the Internet. When entering this market, you should look for the commission models that make more sense for you and your digital marketing strategy. Each marketing objective and commission model obliges, automatically, the adoption of a different divulgation strategy. There are also differences in the disclosure strategies of an affiliate when the objectives are actions or conversions.
Typesy affiliate commissions registration#
The company would not be promoting a product, but a specific action, like filling out a registration form. If the marketing objective of a company is to generate registrations of potential people interested in buying a product, for example, that company can launch an affiliate program that pays a fixed amount for each registration made. Contrary to what is often believed, affiliate programs are not only for physical or digital products but also for actions and contacts. In the affiliate marketing market, there are different commission models, which vary according to the marketing objective of the company or advertiser.
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